Debt Consolidation Loans
Benefits of Seeking Debt Consolidation Loans
Debt can involve many moving parts; credit cards, personal loans and overdue bills that have gone to default can all get out of hand very quickly. And managing fees and interest rates on top of all that can be enough to turn any bad situation into a terrible one.
One way to get on top of multiple debts, is to refinance or roll them into one, by seeking a debt consolidation loan. There are many debt consolidation loan companies in Australia, helping people work through difficult situations by reorganising and simplifying money owed into one manageable repayment plan.
You can find many different types of debt consolidation loan options in Melbourne, as well as debt consolidation services in Sydney. But no matter where they are located, or how credible these services may seem to be, it is crucial to do your research to find not only the most qualified companies, but also to ensure that you don’t end up paying more in interest or fees than you would have previously.
To assist you in finding the right debt consolidation solution for your needs, we created a helpful checklist below:
- Refinancing companies should be qualified to offer those services, so it is important to ensure any company you work with has an Australian credit license equal to accreditation
- Read and have an in depth understanding of any paperwork that is offered to you for the debt consolidation agreement – paperwork should not be+ blank and everything should be easy to understand
- Fully understand how much you will be repaying and when, and that you are not rushed to make any decisions or pressured into committing to something unrealistic for your circumstances
- Ensure that you have the right type of agreement for your loan type. Consumer loans should only be given to consumers and business loans only for business – these are not interchangeable.
If you have any reason to doubt the credibility of your proposed refinancer you can look them up on the https://www.afca.org.au/. This is a membership based initiative that refinancers can join to become certified practitioners. This will ensure you can easily make a complaint about any misconduct and request support if needed.
For more information about debt consolidation loans, also known as refinancing, speak to a qualified insolvency professional at PIPA.